Phones 4u Ltd v EE Ltd & Ors

Phones 4u Ltd v EE Ltd & Ors

The application for security for costs at the higher indemnity level is refused because the possibility of an indemnity costs order is not a significant or real prospect in this case. The allegations, while serious, are not out of the norm for competition law claims, and there are multiple reasons why the claim could fail without any finding of dishonesty or impropriety. The standard basis for security is appropriate.

Parties
Claimant: Phones 4U Limited (In Administration); First Defendant: EE Limited; Second Defendant: Deutsche Telekom AG; Third Defendant: Orange SA; Fourth Defendant: Vodafone Limited; Fifth Defendant: Vodafone Group Public Limited Company; Sixth Defendant: Telefonica UK Limited; Seventh Defendant: Telefónica, S.A.; Eighth Defendant: Telefonica O2 Holdings Limited
Jurisdiction
England and Wales
Judgment Date
20 July 2020
Procedural Posture
Civil (competition/commercial) / Interlocutory Application for Security for Costs
Outcome
Application dismissed
Legal Topics
Security for Costs, Indemnity Costs, Private Enforcement of Competition Law, Breach of Contract, Tort (procuring Breach of Contract)
Competition Law Civil Procedure Security for Costs Indemnity Costs Private Enforcement of Competition Law Breach of Contract Tort (procuring Breach of Contract)

Case Brief

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Parties

Phones 4U Limited (In Administration)

Claimant

EE Limited

First Defendant

Deutsche Telekom AG

Second Defendant

Orange SA

Third Defendant

Vodafone Limited

Fourth Defendant

Vodafone Group Public Limited Company

Fifth Defendant

Telefonica UK Limited

Sixth Defendant

Telefónica, S.A.

Seventh Defendant

Telefonica O2 Holdings Limited

Eighth Defendant

Procedural Posture

Civil (competition/commercial) / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether security for costs should be ordered at a higher level reflecting a potential award of indemnity costs
  2. 2 Whether the nature of the allegations justifies security above the standard basis

Ratio Decidendi

The application for security for costs at the higher indemnity level is refused because the possibility of an indemnity costs order is not a significant or real prospect in this case. The allegations, while serious, are not out of the norm for competition law claims, and there are multiple reasons why the claim could fail without any finding of dishonesty or impropriety. The standard basis for security is appropriate.

Court Disposition

Application dismissed

Orders

  • P4U to provide security to EE, DT, and Orange on the same basis as to the other Defendants (standard basis, not indemnity costs)